TORONTO, Dec. 24, 2012 /CNW/ - Algoma Central Corporation ("Algoma") is
proud to announce the launch of the first vessel in its new series of
Equinox Class vessels designed for service on the Great Lakes - St.
Lawrence Waterway. The vessel will be named Algoma Equinox. The launching occurred at 07:28 local time, December 24, 2012 at the
Nantong Mingde Heavy Industries shipyard in Nantong, China.

This Equinox Class series will include eight vessels consisting of four
gearless bulk carriers (requiring shore-side equipment for cargo
discharge) and four self-unloading bulk carriers. Algoma will own six
of the series, consisting of two gearless bulkers and four
self-unloading vessels. The expected delivered cost of these six
Equinox vessels is approximately $300 million. The CWB will own the
other two gearless bulkers which will be operated and managed by
Algoma.

The Algoma Equinox is expected to commence operations in Canada during the 2013 navigation
season. It will be followed by the delivery of the other seven Equinox
Class vessels at approximately three month intervals through the
remainder of 2013 and in 2014.

The Equinox Class represents the next generation of Great Lakes - St.
Lawrence Waterway bulk cargo vessel. The ships have been specially
designed to optimize fuel efficiency and operating performance thus
minimizing environmental impact. A 45% improvement in energy
efficiency over Algoma's current fleet average is predicted with the
use of a modern Tier II compliant engine and a fully integrated IMO
approved exhaust gas scrubber that will remove 97% of all sulphur
oxides from shipboard emissions. The use of exhaust gas scrubbers
represents the first application of an IMO approved integrated scrubber
on a Great Lakes - St. Lawrence vessel class.

"This is a very exciting day for Algoma" said Greg Wight, Algoma
President and CEO. "Today's launching represents the culmination of
years of work by our employees to create the Equinox Class. We are
very excited to achieve this important milestone and are looking
forward to the completion of this vessel and its delivery to Canada in
2013."

About Algoma Central Corporation

Algoma Central Corporation owns and operates the largest Canadian flag
fleet of dry and liquid bulk carriers operating on the Great Lakes -
St. Lawrence Waterway, including 19 self-unloading dry-bulk carriers,
seven gearless dry bulk carriers and seven product tankers. Algoma also
has interests in ocean dry-bulk and product tanker vessels operating in
international markets. Algoma owns a diversified ship repair and steel
fabricating facility active in the Great Lakes and St. Lawrence regions
of Canada. In addition, Algoma owns and manages commercial real estate
properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.

Cautionary Statements

This press release may include forward-looking information within the
meaning of applicable securities laws including information concerning
the business and future results of Algoma. Forward-looking statements
in this press release include statements about the purchase of vessels
by Algoma. Readers are cautioned to not place undue reliance on
forward-looking information. Actual results and developments may differ
materially from those contemplated by this information. The statements
in this press release are made as of the date of this release and are
based on current expectations. Algoma undertakes no obligation to
update forward-looking information, other than as required by law, or
to comment on analyses, expectations or statements made by
third-parties in respect of Algoma, its financial or operating results
or its securities. Algoma cautions that all forward-looking information
is inherently uncertain and actual results may differ materially from
the assumptions, estimates or expectations reflected or contained in
the forward-looking information, and that actual future results could
be affected by a number of factors, many of which are beyond Algoma's
control, including economic circumstances, technological changes,
weather conditions and the material risks and uncertainties identified
by Algoma and discussed on pages 13 to 17 of Algoma's Annual
Information Form for the year ended December 31, 2011, which is
available on SEDAR at www.sedar.com.